Crude tumbles after shock increases in stored oil and production

Crude tumbles after shock increases in stored oil and production

US crude oil stockpiles rose unexpectedly last week as imports jumped, exports tumbled and production inched up to its highest since at least 1983, the Energy Information Administration said on Wednesday. Inventories were mixed, as a build in crude oil inventories was offset by a robust draw in products which include gasoline, distillate and propane.

USA supermajor ConocoPhillips said Wednesday its three-year spending plan was supported so long as WTI held above $50 per barrel.

The EIA also said crude stocks increased by 2.2 million barrels, shocking the market after analysts polled by Reuters had forecast a 2.9 million-barrel draw and industry group the American Petroleum Institute on Tuesday reported a decline of 1.6 million barrel. USA crude oil imports averaged about 7.4 million barrels per day last week, down by 194,000 barrels per day from the previous week. China's October oil imports fell to just 7.3 million bpd from a near record-high of about 9 million bpd in September, according to data from the General Administration of Customs.

The production surge provided "a little bit of a spook to the market", Rob Thummel, managing director at Tortoise Capital Advisors LLC, which handles $16 billion in energy-related assets, said by telephone. Distillate fuel inventories decreased by 3.4 million barrels last week and are in the lower half of the average range for this time of year.

"The market is rapidly tightening up, as fuel exports and demand remain strong", he said.

Giants defensive coordinator rips fake news
He ended his first year with the Giants in week 5 with a season-ending ankle injury, having made little impact on the field. The bad news? The Giants are considered road underdogs against a squad that has won two of its past 25 games.

Oil prices were little changed on Wednesday as rising political tensions in the Middle East offset USA government data showing an increase in domestic crude production and a surprise build in stockpiles. USA gasoline futures pared losses after the report, which was seen as bullish for refined products. Refining capacity utilisation increased by 1.5 percentage points from the previous week to 89.6%.

United States gasoline production fell by 20,000 bpd (barrels per day) or 0.2% to 10,167,000 bpd between October 27, 2017, and November 3, 2017.

Analysts in a Reuters poll had expected a 1.9 million-barrel drop. Prices hit a higher high and a lower low with a lower close. East Coast gasoline inventories fell to the lowest level since December, 2014 and Midwest gasoline inventories were at their lowest since November, 2014.

The U.S. Energy Information Administration (EIA) said in a report that U.S. crude production rose to 9.620 million barrels per day during the week of November 3, the highest weekly output on record according to federal energy data going back to 1983.

Related Articles